A: Trading companies can be registered in states with no state income tax (Alaska, Florida, Nevada, South Dakota, Texas, Washington & Wyoming) and have no impact on imports and exports. In terms of taxation, compared with other states, companies registered in those states are exempt from state income tax. Many businesses will choose to set up their own trading companies in states with on state income tax.
A: The information required for company registration:
1) Copy of ID of Incorporator
2) Three alternative company names (to avoid the possibility of unapproved company with duplicate names)
3) Company address (Company address is the address of the registered company office)
Registration fee:
The service fee is different in each state. Generally, the service fee is between $500-$1000, including EIN application.
The processing time varies from state to state. The company's approval time is usually 2 business days to 3 weeks. Approval time for tax number application is about 1 business day to 4 weeks.
A: Yes. IRS Number is Federal Employer Identification Number, known as FEIN, is the company's federal tax number.
A: A social security number is not required to apply for a federal tax number. Incorporation of a company requires a EIN.
A: Neither LLC nor C Corporation need a social security number to apply.
A: The situation is different in each state.
A: Regarding taxation, each company pays corporate tax to the federal government based on its profit. In terms of state taxes, each state has different regulations. In California, for example, companies need to pay a minimum annual tax of $800 to the California FTB regardless of whether they are making profit or not. If the company is making profit, the tax rate is 8.84% of the profit. Tax-exempt states do not need to pay income tax. But other taxes may apply.
A: The profits and losses of the LLC are transferred to individual members, and LLC members report taxes in their personal SSN. C-Corporation may face double taxation. If the company is making profit, the company must first pay corporate income tax; and the dividends distributed to each shareholder will subject to individual income tax.
A: I need to open a trading company, accepting orders in the U.S. and order the product from Chinese factory; then, as an importer, I will import and sell to local buyers in the U.S.. Can I register in California and can I import goods in other states?
A：Our membership system is paid once a year. If you decide to become our member, you need to pay for one year membership fee in advance.
